ANNUAL REPORT
2017
DIRECTORS
President: Ian McCann
Vice President: Adam Cromack
Alan Fowler
Justin Isaacs
Trevor Simpson
Laurie Capovilla
OAM
Robert Willis
George Mumford
OFFICE BEARERS HONORARY LIFE MEMBERS
MANAGEMENT
L. L. Rigby
1980
Deceased
Chief Executive Officer
Glenn Kovacs
W. L. Archer
1981
Deceased
R. A. McIntosh
1982
Deceased
Chief Financial Officer
Nicole Pearce
R. L. Collison
1982
Deceased
Gaming Manager
Renee Vartuli
R. N. Downing
1984
J. R. Scott
1986
Deceased Deceased
R. R. Howard
1987
T. P. Donoghue
1988
Deceased
W. F. Webster OAM 1991
Deceased
D. R. Cromack
1992
Deceased
K. F. Darke
1992
B. J. Doyle
1993
R. L. Mavin
1995
J. Felstead
1999
L. Capovilla
1999
N. Stoddart
1999
Operations and Food & Beverage Manager Michael Sue See Marketing Manager
Gina Skinner
Information Technology Communications Manager
Colin Dunbar
Facilities Manager
Paul Felice
Human Resources Manager
Rebecca Green
Auditors
KPMG
Bankers
Commonwealth Bank of Australia
Solicitors
Frank Legal
Deceased Deceased
T. Simpson OAM 2001 B. Bowman
2002
Deceased
A. Downing
2009
Deceased
A. Branson
2011
J. Stephenson
2013
60 TH ANNUAL REPORT 2017 WENTWORTHVILLE LEAGUES CLUB LIMITED - ABN 25 000 244 459 50 Smith St, Wentworthville NSW 2145 Phone: 02 8868 9200 Fax: 02 8868 9290 Email: info@wentyleagues.com.au www.wentyleagues.com.au
Wentworthville Leagues Club Limited Contents
President report
1
Chief Executive report
2
Constitutional reporting Directors' report Lead auditor's independence declaration
3 5 10
Independent auditor's report
11
Directors' declaration
14
Statement of profit or loss and other comprehensive income
15
Statement of financial position
16
Statement of changes in members' funds
17
Statement of cash flows
18
Notes to the financial statements
19
President’s Report Dear Members, On behalf of the Board I am pleased to submit to members the 60th Annual Report of Wentworthville Leagues Club. I am pleased to report again that we have increased our profit before tax for another year, with a result for 2017 of $11,435,946. This in an increase of $1.7m on 2016 and testament to the efforts of the team at Wenty Leagues and the continued support of members. The revenue from operations also increased with a result of $70.05m for 2017 compared to $68.30m in 2016. Projects delivered throughout the year included the purchase of Mack Street and the new western carpark, as well as the new all-weather synthetic bowling green. These two new assets have proven a valued addition to the facilities offered by the club. Members will have noticed that work is well under way on the next stage of our Master Plan which includes the new multi-storey carpark, extending dining area and new administration offices. It has been a long wait, but it is pleasing to see the long-planned vision for the club unfold into a reality. Any construction brings its challenges and we have been very grateful for the patience shown by our members and guests. I look forward to reporting on the completion of this next stage this time next year. The 2018 Annual General Meeting will be held on Sunday 27th May in the Starlight Room at 10.00am and I look forward to seeing members at this meeting where I shall report on both our strong financial growth and progress on the Master Plan. In closing, I would like to thank my fellow Board members for their continued support and dedication to Wenty Leagues and for the highly professional manner they conduct themselves as directors. I also thank the management team for their continued efforts and hard work throughout the year that was exceptionally busy and yielded exceptional results. My thanks also extend to the wives, husband and partners of the Board and management team for their understanding and patience throughout the year. I also extend a warm thank you to our sporting clubs and all our members for your support for our great club.
Ian McCann President
1
Chief Executive Officer’s Report Dear Members, Thank you to all our members and guests whom have made Wenty Leagues Club their destination throughout 2017. The past year has been extremely productive for the Wenty Leagues team with their hard work and effort resulting in growth in revenue and membership. Club membership finished the year with a total of 63,563 members. This is an increase of nearly 6% and indicative of the year on year growth the club has seen and anticipates into the future. Again in 2017 we offered members a wide range of prizes including three major promotions offering cars and holidays totalling approximately $225,000. I’d like to congratulate all the winners and I trust they are enjoying their new cars and have had relaxing holidays. Our promotions team has also added more variety in our raffles with regular themed prizes and increased value, and pleasingly these have been very popular. Our entertainment line-up saw new concepts including Songwriters in the Round which has offered variety to members and importantly an opportunity to support Australian talent. We continue to source quality shows and were thrilled to host performances by the likes of Ian Moss, Jimeoin, Marina Prior, Daryl Braithwaite and many more. Catering at the club has seen significant growth in trade and this is a result of the continued pursuit of excellence by our chefs and catering staff in delivering the best possible dining experience to our members & guests. Beyond the club we continue to engage with our community and various stakeholders. One proud achievement has been the introduction of a volunteer program for staff that has seen them serve meals to the needy and packing Christmas hampers with Parramatta Mission. Similarly, our staff have been thrilled to help with the Meals from the Heart at Ronald McDonald House. This program has proved popular with staff and we plan to build on this in 2018. We have also worked closely with Youth Off The Streets and we were proud to raise money for them through our inaugural Carols on Ringrose. Of course, our cash and in-kind contributions to the wider community continued with donations this year totalling over $1.6m. I wish to thank the Board of Directors for their ongoing support during the past year and the management team and staff who continue to strive to provide exceptional hospitality.
Glenn Kovacs Chief Executive Officer
2
Constitutional Reporting 2017 $ Member statement of benefit (Rule 70) The apportionment of the annual profit has been appropriated for improvements to the benefit for the members. Donation - Sporting bodies Donation - Accredited incorporated sport and recreational clubs Donations - Clubgrants and other Ringrose Park & bowling greens Subsidised entertainment (non-gaming and net of revenue) Members expenses
796,978 272,131 482,271 644,311 664,195 58,419 2,918,305
Directors Honorariums (Rule 86: Allowance $57,000 + CPI) Position Name President I McCann Vice President A Cromack Director L Capovilla Director A Fowler Director J Isaacs Director G Mumford Director T Simpson OAM Director R Willis
12,737 7,199 7,199 7,199 7,199 7,199 7,199 7,199 63,130
Directors expenses In accordance with the Constitution the total value of directors expenses under Rule 87 to Rule 93 (excluding Rule 92) for the year 2017 (indexed for CPI) is $152,009 (2016: $148,789). The actual expenditure for the year of $104,425 (2016: $116,204) is $47,583 and 31% below the amount allocated for the year and a decrease of $11,778 or -10% (decrease in 2016: $15,783 or -12%) below the costs of the prior year. In accordance with the Constitution the Rule 92 Special functions and Rule 94 Club attire do not have approved amounts of expenditure but rather apply a "reasonable expenditure" test. The base year for the CPI annual increases is a combination of the adoption of the original Constitution in the year 2000 and subsequent amendments in the year 2005. CPI Base Period Rule 87 88 89 90 91 92 93 94
Clubs NSW, Leagues Club Association and trade shows Board meetings Club, charity and community attendance Partner club, charity or community attendance Director & guest - In house dinning Annual sports, Board & AGM functions Special function - service & achievement Other expenses not specified in other rules Uniform attire
Jan-05 Jan-00 Jan-05 Jan-00 Jan-00 N/A Jan-05 N/A
Constitution Approved Allowance Amount $ $ 36,000 49,815 18,000 29,422 9,500 13,146 6,400 10,461 25,000 40,863 6,000
8,302
100,900
152,009
Actual Expenditure $ 26,652 28,886 5,984 7,386 33,498 179 1,088 752 104,425
3
Constitutional Reporting Directors expenses (continued) Professional development and education (Rule 87) Clubs NSW Leagues Club Association Clubs NSW regional meetings, Gaming Expo conference and trade show and attendance other clubs.
Board meetings and community & charity attendance (Rule 88) Board meals & beverage Cab charge
2017 $ 1,761 13,364 11,527 26,652
19,328 9,558 28,886
Partner attendance at community & charity events (Rule 89) Club community and charity events.
5,984
Directors entertainment in house dining facilities (Rule 90)
7,386
Special functions (Rule 91) Annual Sports & Recreation club dinner AGM Annual Board dinner
29,366 2,716 1,416 33,498
Special functions (Rule 92) Service and achievement
Other expenditure (Rule 93)
179
1,088
752
Club attire (Rule 94)
Aggregate sum of the 6 highest paid officers of the club (Rule 156 (b)(i)) The aggregate sum representing the annual salaries, bonuses and emoluments paid (when taken together) to the 6 highest paid Officers of the club including the CEO without reference to name or title (2016: $1,268,155)
Registered members (Rule 156 (b)(ii)) The number of members registered at the end of the club's financial year (2016: 60,091)
1,290,570
63,563
4
Wentworthville Leagues Club Limited Directors' report For the year ended 31 December 2017 The directors present their report together with the financial report of Wentworthville Leagues Club Limited (the Company or the Club) for the financial year ended 31 December 2017 and the auditor’s report thereon. Directors The Directors of the Company at any time during or since the end of the financial year are: Name I McCANN President
Experience, qualifications, special responsibilities and interest in contracts Director 11 years including President 9 years. Chairman of Board’s Remuneration Committee and Property Corporate and Investment Committee and Sponsorship Committee. Director of Leagues Club Association. Delegate of member bodies of Clubs NSW and member of Club Directors Institute. Member of Clubs Corporate Governance Working Group, Boards Representative to Sports Council. Member of all Sporting Associations and patron of Darts Club and Cricket Club. Life member of WDRLFC. Interest in contracts - Nil
A CROMACK Vice President
Director 14 years including Vice President for 5 years. Member of Boards Remuneration Committee, Sponsorship Committee and Chairman of Audit Risk and Compliance Committee. Member of member bodies of Clubs NSW and Club Directors Institute. Delegate of Leagues Club Association. Alternate to Sports Council and Ringrose Park Local Committee. Member of all Sporting Associations, including Life Member of WDRLFC. Interest in Contract: Platinum Electricians
A FOWLER Director
Director 7 years, including past Vice President for 2 years. Member of Board’s Audit Risk and Compliance Committee, Remuneration Committee and Sponsorship Committee. Member of Member Bodies of Leagues Club Association and Club Directors Institute. Member of all Sporting Associations. Interest in Contracts: Laing and Simmons Real Estate
5
Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2017 Directors (continued) Name L CAPOVILLA Director
Experience, qualifications, special responsibilities and interest in contracts Director 29 years. Honorary Life Member, Member of the Board’s Audit Risk and Compliance and Sponsorship Committee. Alternate to Sports Council, Delegate to Leagues Clubs Association and Member of ClubsNSW and Clubs Directors Institute. 25 years’ service Leagues Club Australia. Alternate Ringrose Park Local Committee. Member of all Sporting Associations and Patron of Wenty Leagues Golf Club and Life Member of WDRLFC and WUJRLFC. Delegate of Football Club Reunion Committee. Interest in contracts - Nil
T SIMPSON OAM Director
Director 18 years. Honorary Life Member. Member of Board's Property Corporate and Investment Committee and Sponsorship Committee. Member of member bodies of Leagues Club Association and Club Directors Institute. Delegate to Clubs NSW. President of Ringrose Park Local Committee. Member of all Sporting Associations including patron to Swimming, co-patron of Darts, patron and life member of Jujitsu and WUJRLFC. Recipient of Australian sports and Order of Australia medals and NSW senior achievement award. Leagues Club Australia’s Board and Managers Service Awards 15 years. Recipient of the Paul Harris fellow for Holroyd Rotary. Interest in contracts - Nil
J ISAACS Director
Director 9 years. Member of Board's Remuneration Committee and Audit, Risk and Compliance Committee and Sponsorhip Committee. Member of Leagues Club Association and Club Directors Institute. Member of all Sporting Associations including patron of Darts Club and Life member and President of Cricket Club Interest in contracts - Wentworthville Leagues Cricket Club.
G MUMFORD Director
Director 11 non consecutive years. Member of Board's Property Corporate and Investment Committee and Sponsorship Committee. Member of Leagues Club Association and Club Directors Institute. Member of all Sporting Associations including Life Member of Men's Bowls Club. Interest in contracts - Nil
R WILLIS Director
Director 3 years. Vice President of Cricket Club. Member of the Board's Sponsorship Committee and Property Coprorate and Investment Committee. Member of Club Directors Institute. Life Member of the Cricket Club and Secretary of the Ringrose Park Local Committee. Member of all Sporting Associations. Interest in contracts - Wentworthville Leagues Cricket Club
6
Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2017 SHORT AND LONG TERM OBJECTIVES To promote and encourage the sport of Rugby League in the Wentworthville district. To be the community's venue of choice, that special destination every day of the week for that memorable experience. STRATEGY FOR ACHIEVING OBJECTIVES The objectives will be achieved through providing a value offering in product and service while increasing profitability in a quality hospitality and entertainment venue. PRINCIPAL ACTIVITIES The principal activities of the company during the course of the financial year were that of a licensed club. The purpose of the club is to promote and encourage the sport of Rugby League and to provide facilities and services to its members. ACTIVITIES IN ACHIEVING THE OBJECTIVES The principal activities provided a financial return sufficient to maintain the assets of the club, promote and encourage the sport of Rugby League in the Wentworthville district and provide, promote and develop an environment within the club directed towards good fellowship and social harmony amongst its members. MEASUREMENT OF PERFORMANCE The entity is measured against a financial budget, a strategic plan and a set of key performance indicators that are assigned to its senior management team. In addition, research is carried out to assess the team's performance with regard to the demographic of the area and our competition. MEMBERSHIP The company is limited by guarantee and without share capital. If the company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. As at 31 December 2017 there are 63,563 (2016: 60,091) current members across the following membership classes:Type Foundation life Honorary life Companion Life Twenty five year Fifty year Standard Concessional Staff
Number 32 8 4 2,174 277 47,539 13,469 60 63,563
RESULTS OF OPERATIONS The profit after tax for the financial year is $10,894,316 (2016: Profit $9,276,586).
7
Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2017 DIRECTORS' MEETINGS The following table sets out the number of Director's meetings held and attended during the year. During the year 16 board meetings were held. Under the Board's Charter for its Committee the Directors along with management combine to undertake the responsibilities of the Property Corporate and Investment Committee, Audit Risk and Compliance Committee, Sponsorship Committee, Disciplinary Committee and Remuneration Committee meetings. The directors have also attended other meetings and functions in fulfilling their duties, inclusive but not limited to industry professional bodies, sporting associations, councils and political representatives functions and sporting club committees throughout the year.
Director Ian McCann Adam Cromack Laurie Capovilla Alan Fowler Justin Isaacs George Mumford Trevor Simpson OAM Robert Willis
Board meetings and Charter Committees Available Attendance 40 39 36 35 40 39 38 36 38 36 39 38 45 44 41 40 317 307
Other meetings 21 16 18 8 13 15 22 25 138
DIRECTORS' AND EXECUTIVES' REMUNERATION Remuneration of directors is in accordance with Rule 86 of the Constitution. Directors of the company Details of remuneration provided to directors is as follows:Directors I McCann (President) Adam Cromack (Vice President) L Capovilla A Fowler J Isaacs G Mumford T Simpson OAM R Willis
Honorarium 12,737 7,199 7,199 7,199 7,199 7,199 7,199 7,199
8
Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2017 DIRECTORS' AND EXECUTIVES' REMUNERATION (CONTINUED) Officers of the company The executive's remuneration package may contain the key elements of salary, superannuation and long service leave with benefits including motor vehicles and performance based incentive scheme. In accordance with Rule 159 (b) of the Constitution, the aggregate remuneration representing the annual salaries, bonuses and emoluments provided to the 6 highest paid officers of the company is $1,290,570 (2016: $1,268,155). EVENTS SUBSEQUENT TO REPORTING DATE In January 2018, the club has accepted the borrowing offer from Australia and New Zealand Banking Group Limited with a total facility limit of $93.45 million, of which $85 million is in relation to financing the Master Plan Project which is projected to be completed in March 2020. The main purpose of the bank facility is to ensure the Club's commitment to business expansion and investment. Apart from the above, there have been no other events subsequent to reporting date which would have a material effect on the Club's financial statements at 31 December 2017. AUDITOR'S INDEPENDENCE DECLARATION The auditor's independence declaration is included on page 10. Signed in accordance with a resolution of the directors:
I McCann Director Dated at Sydney, 26 April 2018
9
Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Wentworthville Leagues Club Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Wentworthville Leagues Club Limited for the financial year ended 31 December 2017 there have been: i.
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
ii.
no contravention of any applicable code of professional conduct in relation to the audit.
KPMG
Cameron Roan Partner Sydney 26 April 2018
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under Professional Standards Legislation.
10
Independent Auditor’s Report To the Directors of Wentworthville Leagues Club Limited Opinion We have audited the Financial Report of Wentworthville Leagues Club Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Company's financial position as at 31 December 2017 and of its financial performance for the year ended on that date; and
The Financial Report comprises: • Statement of financial position as at 31 December 2017 • Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors' Declaration.
• complying with Australian Accounting Standards Reduced Disclosure Requirements and the Corporations Regulations 2001.
Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors of Wentworthville Leagues Club Limited, would be in the same terms if given to the Directors as at the time of this Auditor’s Report.
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under 11 Professional Standards Legislation.
Other Information Other Information is financial and non-financial information in Wentworthville Leagues Club Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. This includes the President’s report, Chief Executive Officer’s Report, Constitutional Reporting, Directors Report and Unaudited Income Statements. Management are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Company's ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report.
12
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar3.pdf. This description forms part of our Auditor’s Report.
KPMG01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
Cameron Roan Partner Sydney 26 April 2018
13
Wentworthville Leagues Club Limited Directors' declaration In the opinion of the directors of Wentworthville Leagues Club Limited (the Company): (a) the Company is not publicly accountable; (b) the financial statements and notes, set out on pages 15 to 36, are in accordance with the Corporations Act 2001, including: (i)
giving a true and fair view of the Company's financial position as at 31 December 2017 and of its performance for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards - Reduced Disclosure Regime and the Corporations Regulations 2001; and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors.
_________________________________ I McCann Director Dated at Wentworthville this 26th day of April 2018
14
Wentworthville Leagues Club Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2017 In AUD
Revenue Other income Gain/(Loss) from disposal of non current asset Change of inventories of finished goods Donations Personnel expenses Entertainment, advertising and promotions Poker machine compliance costs Legal, consulting and auditor fees Raw materials and consumables used Repairs, consumables and maintenance Utilities and government charges Other expenses Profit before depreciation, income tax and finance costs
Note 4 4 4
5
Depreciation and amortisation Results from operating activities
Finance income Finance expenses Net finance costs
6
Profit before income tax Income tax expense Profit for the year
7
Other comprehensive income Total comprehensive income for the year
2017
2016
70,049,273 370,377 -
68,295,654 314,777 (1,166,901)
11,647 (1,629,528) (16,808,007) (5,949,861) (14,385,493) (196,816) (6,155,058) (1,942,717) (2,242,557) (3,873,219) 17,248,041
28,558 (1,568,611) (16,479,846) (5,850,081) (14,094,975) (197,279) (5,867,071) (1,814,365) (2,182,089) (3,614,744) 15,803,027
(5,618,822) 11,629,219
(5,733,637) 10,069,390
118,953 (312,226) (193,273)
121,973 (482,683) (360,710)
11,435,946
9,708,680
(541,630) 10,894,316
(432,094) 9,276,586
10,894,316
9,276,586
The notes on pages 19 to 36 are an integral part of these financial statements.
15
Wentworthville Leagues Club Limited Statement of financial position As at 31 December 2017 In AUD
Assets Cash and cash equivalents Trade and other receivables Inventories Prepayments Total current assets Property, plant and equipment Investment property Deferred tax assets Intangibles Investments Other non-current assets Total non-current assets Total assets Liabilities Trade and other payables Provision for income tax Borrowings Employee benefits Provisions Total current liabilities Borrowings Employee benefits Trade and other payables Provisions Total non-current liabilities Total liabilities Net assets
Note
2017
2016
8 9 10 12
10,261,935 68,937 247,692 948,678 11,527,242
13,859,030 93,614 259,339 569,473 14,781,456
15 14
88,419,667 14,675,399 142,878 1,790,717 24,503 1,557 105,054,721 116,581,963
75,334,386 14,336,839 115,837 765,749 27,676 1,557 90,582,044 105,363,500
4,240,236 66,354 1,264,313 1,446,692 578,986 7,596,581
4,218,712 45,284 1,181,081 1,313,991 485,341 7,244,409
4,263,682 338,890 143,858 79,627 4,826,057 12,422,638 104,159,325
4,347,024 293,925 126,883 86,250 4,854,082 12,098,491 93,265,009
104,159,325 104,159,325
93,265,009 93,265,009
13 11 12
16 18 17 19
18 17 16 19
Members' funds Retained profits Total members' funds
The notes on pages 19 to 36 are an integral part of these financial statements.
16
Wentworthville Leagues Club Limited Statement of changes in members' funds As at 31 December 2017 In AUD
Balance at 1 January 2016 Total comprehensive income for the period Profit for the year Other comprehensive income Total comprehensive profit for the period
General funds 83,988,423 9,276,586 9,276,586
Balance at 31 December 2016
93,265,009
Balance at 1 January 2017
93,265,009
Total comprehensive income for the period Profit for the year Other comprehensive income Total comprehensive profit for the period
10,894,316 10,894,316
Balance at 31 December 2017
104,159,325
The notes on pages 19 to 36 are an integral part of these financial statements.
17
Wentworthville Leagues Club Limited Statement of cash flows For the year ended 31 December 2017 In AUD
Note
2017
2016
Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Dividends received Interest paid and other finance costs paid Income tax paid Net cash from operating activities
77,081,345 (60,243,376) 16,837,969 3,173 (312,226) (547,600) 15,981,316
75,108,071 (58,089,667) 17,018,404 275 (482,683) (962,765) 15,573,231
Cash flows from investing activities Proceeds from sale of property, plant and equipment Acquisition of investment property Acquisition of property, plant and equipment Interest received Acquisition of gaming licenses Net cash flows used in investing activities
100,073 (38,880) (18,122,278) 118,954 (1,024,968) (18,967,099)
20,400 (154,061) (9,484,319) 121,698 (250,000) (9,746,282)
(611,312) (611,312)
(634,602) (634,602)
(3,597,095) 13,859,030 10,261,935
5,192,347 8,666,683 13,859,030
Cash flows from financing activities Repayment of leases Net cash flows used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
8
The notes on pages 19 to 36 are an integral part of these financial statements.
18
Wentworthville Leagues Club Limited Notes to the financial statements For the year ended 31 December 2017 1
Reporting entity Wentworthville Leagues Club Limited (the Company) is a company limited by guarantee incorporated and domiciled in Australia. The address of the Company's registered office is 50 Smith Street, Wentworthville, NSW, 2145. The financial statements of the Company are as at and for the year ended 31 December 2017. The Company is a not-for-profit entity and is primarily involved in the encouragement and promotion of the sport of Rugby League and to provide facilities and services to its members.
2 (a)
Basis of preparation Statement of compliance In the opinion of the directors, the Company is not publicly accountable. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Corporations Act 2001. These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements. The financial statements were approved by the Board of Directors on 26 April 2018
(b) Basis of measurement The financial statements have been prepared on the historical cost basis. (c)
Going concern The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business.
(d) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company's functional currency. (e)
Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: • Note 13
Intangible assets
• Note 25
Contingencies
19
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 2
Basis of preparation (continued)
(f)
Changes in accounting policies A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2017, and have not been applied in preparing these financial statements. Those which may be relevant to the Company are: AASB 15 Revenue from contracts with customers , becomes mandatory for the 2018 financial statements and could change the classification and recognition method of revenue. It establishes a comprehensive framework for determining whether, how much and when revenue is recognised AASB 16 Leases requires companies to bring most operating leases on-balance sheet from 2019. Companies with operating leases will appear to be more asset-rich, but also more heavily indebted. AASB 16 is effective for the Company’s 2019 financial statements. The Company had reviewed the requirements of these standards and they are not expected to have a significant impact on the Company's financial statements
3
Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
(a) (i)
Financial instruments Non-derivative financial assets Financial assets are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability.
The Company has the following categories of non-derivative financial assets: cash and cash equivalents and trade and other receivables. Trade and other receivables Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment losses (see note 3(g)).
20
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3
Significant accounting policies
(a)
Financial instruments (continued)
(i)
Non-derivative financial assets (continued) Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments.
(ii)
Non-derivative financial liabilities Financial liabilities are recognised initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
The Company has the following categories of non-derivative financial liabilities: loans and borrowings and trade and other payables. Loans and borrowings and trade and other payables are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest rate method. (b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net in profit or loss.
(ii)
Reclassification to investment property When the use of a property is held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes, the property is reclassified as investment property.
(iii)
Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred.
21
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3 Significant accounting policies (continued) (b) Property, plant and equipment (continued) (iv) Depreciation Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use.
Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset. Land is not depreciated. The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows: • 40 years Buildings including investment properties • 11 years Leasehold improvements • 5 - 10 years Plant and equipment • 3 years Equipment under finance lease • 5 - 10 years Furniture, fixtures and fittings • 3 - 5 years Office machines • 8 years Motor vehicles Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (c)
Intangible assets Poker machine entitlements Poker machine entitlements that are acquired by the Club, which have infinite useful lives, are measured at cost less accumulated impairment losses. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Impairment Poker machine entitlements have indefinite useful lives as they have no expiry date. Accordingly, such intangible assets are not amortised but are systematically tested for impairment at each reporting date (see note 3(g)).
(d) Non-current assets held for sale Non-current assets, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets are remeasured in accordance with the Club's accounting policies. Thereafter generally the assets are measured at the lower of their carrying amount and fair value less cost to sell. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss. Property, plant and equipment once classified as held for sale are not depreciated.
22
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3
Significant accounting policies (continued)
(e)
Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recognised on a straight-line basis over the estimated useful lives of each component of investment property. Cost includes expenditure that is directly attributable to the acquisition of the investment property. Subsequent cost is recognised in the carrying amount of the investment property. When the use of a property changes such that it is reclassified as property, plant and equipment, its carrying value is transferred across on date at reclassification.
(f)
Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the firstin first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale.
(g) Impairment (i) Non-derivative financial assets A financial asset is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or economic conditions that correlate with defaults. The Company considers evidence of impairment for financial assets measured at amortised cost (loans and receivables) at both a specific asset and collective level. All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics. In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for any judgement by management as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
23
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3 Significant accounting policies (continued) (g) Impairment (continued) (i) Non-derivative financial assets (continued) An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against the non-derivative financial assets. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (ii)
Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories and investment property, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Depreciated replacement cost is used to determine value in use for property, plant and equipment. Depreciated replacement cost is the current replacement cost of the item less, where applicable, accumulated depreciation to date, calculated on the basis of such cost. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. For investment property, value in use calculated using the discounted cashflows of future rentals is used. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amounts of the assets in the unit (group of units) on a pro rata basis. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(h) Employee benefits (i)
Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees.
(ii)
Other long-term employee benefits The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations.
(iii)
Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
24
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3
Significant accounting policies (continued)
(i)
Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
(j) (i)
Revenue Goods sold and services rendered Revenue from the sale of goods comprises revenue earned from the provision of food, beverage and other goods. It is measured at the fair value of the consideration received or receivable and is recognised in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer. Revenue from services rendered comprises revenue from hotel, fitness and gaming facilities together with other services to members and patrons of the Company. It is measured at the fair value of the consideration received or receivable and is recognised in profit or loss as the services are provided. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due, the costs incurred or to be incurred cannot be measured reliably, there is a risk of return of the goods or there is continuing management involvement with the goods.
(ii)
Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.
(iii)
Dividend and interest revenue Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
(k)
Lease payments Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Other leases are operating leases and the leased assets are not recognised in the Company's statement of financial position. Payments made under operating leases are recognised in profit or loss on a straight- line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.
(l)
Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance cost on loans and borrowings is recognised in profit or loss using the effective interest
(m) Income tax Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. (i)
Current tax Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.
25
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 3
Significant accounting policies (continued)
(m) Income tax (continued) (ii)
Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction and that affects neither accounting nor taxable profit or loss. The measurement of deferred tax reflects the tax consequences that could follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, clubs are only liable for income tax on income derived from non-members and from outside entities.
(n) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to the Australian Taxation Office (ATO) is included as a current asset or liability in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
26
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 4
Profit from operations In AUD
Revenue from continuing activities Revenue from rendering services Revenue from beverage outlet sales Revenue from catering outlet sales Membership subscriptions Commissions -ATM -Keno -TAB -Vending -Other Entertainment and promotion Investment property rentals Other revenue Total revenue from operations Other income Gain on sale of asset (Refer to note 14) Reversal of impairment loss on investment property
2017
52,484,465 5,547,469 9,544,672 201,336
51,146,386 5,266,631 9,247,373 188,844
81,905 235,729 118,371 45,024 24,357 848,457 876,058 41,430 70,049,273
146,603 237,026 98,313 41,724 24,456 934,235 891,928 72,135 68,295,654
20,274 350,103 370,377
314,777 314,777
-
(716,901) (450,000) (1,166,901)
13,787,319 765,156 205,023 177,666 1,325,927 546,916 16,808,007
13,567,237 748,790 211,947 31,436 1,249,284 671,152 16,479,846
Loss from disposal of non current asset Loss from disposal of non current asset Write-off of property, plant and equipment
5
Personnel expenses In AUD
Wages and salaries Payroll tax Workers compensation (Increase)/ decrease in employee benefits Contributions to defined contribution plans Other associated employee expenses
6
2016
2017
2016
Finance income and finance costs In AUD
2017
2016
Dividend income Interest income Finance income
118,953 118,953
275 121,698 121,973
Interest expense Change in Financial assets at fair value through profit or loss Finance costs Net finance costs recognised in profit or loss
(312,226) (312,226) (193,273)
(482,683) (482,683) (360,710)
27
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 7
Tax expense In AUD
Current tax expense Current expense in respect of the current year Movement in deferred tax asset Under/ (over) provided in prior years Income tax expense/(benefits)
2017
568,671 (27,041) 541,630
2016
439,207 (7,113) 432,094
Numerical reconciliation between tax expense and pre-tax accounting profit The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, registered clubs are only liable for income tax on income derived from non-members and from outside entities. The amount set aside for income tax in the statement of profit or loss and other comprehensive income has been calculated as follows: In AUD
Profit from operations Income tax expense calculated at 30% Effect of revenue that is exempt from taxation Effect of expenses that are not deductible in determining taxable profit Effect of mutuality Movement in deferred tax asset Income tax expense recognised in profit or loss 8
2016
11,435,946
9,708,680
3,430,784 (16,532,857) 13,014,578 656,166 (27,041) 541,630
2,912,604 (13,442,684) 11,490,492 (521,190) (7,113) 432,109
Cash and cash equivalents In AUD
Cash at bank Cash at call Cash floats Cash and cash equivalents 9
2017
2017
472,077 4,545,315 5,244,543 10,261,935
2016
1,103,041 8,011,171 4,744,818 13,859,030
Trade and other receivables In AUD
Trade receivables Sundry debtors Provision for doubtful debts
2017
68,937 14,570 (14,570) 68,937
2016
93,614 14,570 (14,570) 93,614
10 Inventories In AUD
Finished goods - at cost
2017
247,692 247,692
2016
259,339 259,339
11 Investments In AUD
Shares in listed companies
2017
24,503 24,503
2016
27,676 27,676
28
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 12 Other assets In AUD
Current Prepayments Non-current TAB deposits
2017
2016
948,678 948,678
569,473 569,473
1,557 1,557
1,557 1,557
13 Intangible assets In AUD
Balance at the beginning of the year
2017
2016
765,749
505,538
Acquisitions
1,024,968
260,211
Balance at the end of the year
1,790,717
765,749
Poker machine entitlements are stated at cost less accumulated impairment losses. Poker machine entitlements have an indefinite useful life given they have no expiry date, and accordingly are not amortised but are to be assessed annually for impairment. 14 Investment property In AUD
Cost Balance at the beginning of the financial year Additions Reversal of impairment losses previously recognised in profit and loss Transfer from property, plant and equipment Disposals Balance at the end of the financial year
2017
2016
14,629,210 38,880 350,103 (20,492) 14,997,701
17,106,248 154,061 314,777 (2,421,018) (524,858) 14,629,210
292,371 50,423 (20,492) 322,302
316,591 57,640 (81,860) 292,371
Net book value at the beginning of the financial year
14,336,839
16,789,657
Net book value at the end of the financial year
14,675,399
14,336,839
Accumulated depreciation Balance at the beginning of the financial year Depreciation Disposals Balance at the end of the financial year
Impairment losses and recoveries during the period relate to write-downs and recoveries of investment properties to recoverable value based upon both assessments of valuations and capitalisation of rental revenue. The fair value assessment of residential investment properties was undertaken as follows: The latest independent valuations of the Company’s investment property was carried out as at 13 September 2017 Global Valuation Services Pty Ltd (Registered Valuer No. 2745). The open market value for these properties was $32,875,000.
29
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 15 Property, plant and equipment In AUD
Freehold land Leasehold Plant and & buildings improvements equipment Cost Balance at 1 January 2017 Additions Disposals Transfers Reclassification adjustment Balance at 31 December 2017
51,769,326 3,025,284 (16,526) 173,016 903,127 55,854,227
Depreciation Balance at 1 January 2017 Depreciation for the year Disposals Balance at 31 December 2017 Carrying amounts At 1 January 2017 At 31 December 2017
Furniture, fixtures and fittings
Office machines
Motor vehicles
Capital work in progress
Total
2,892,242 (322,272) 2,569,970
30,799,303 2,807,335 (4,962,348) (903,127) 27,741,163
16,904,715 334,995 (1,723,603) 15,516,107
1,822,296 301,284 (552,852) 1,570,728
96,125 14,000 110,125
6,699,450 12,250,582 (173,016) 18,777,016
110,983,456 18,733,480 (7,577,601) 122,139,335
9,629,220 1,041,653 10,670,873
772,692 131,866 (322,272) 582,286
17,743,380 3,294,963 (4,922,224) 16,116,119
6,130,700 879,339 (1,702,610) 5,307,429
1,325,479 201,174 (550,697) 975,956
47,598 19,407 67,005
-
35,649,070 5,568,402 (7,497,803) 33,719,669
42,140,106 45,183,354
2,119,549 1,987,684
13,055,923 11,625,044
10,774,014 10,208,678
496,817 594,771
48,527 43,120
6,699,450 18,777,016
75,334,386 88,419,667
The fair value assessment of the freehold land and buildings was carried out as at 13 October 2017 by Global Valuations Services Pty Limited (Registered valuer no. 2745) of $66,900,000 on the basis of open market for existing use resulting in building and improvements of $55,600,000 and a valuation of land of $11,300,000. As land, building and improvements are recorded at cost, the valuation has not been brought to account.
30
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017
16 Trade and other payables In AUD
2017
2016
Current Trade payables GST payable Other payables Accruals
1,435,707 258,984 336,643 2,064,840
2,231,094 286,633 340,630 1,224,199
Members' subscriptions in advance Non-Current Members' subscriptions in advance
144,062
136,156
4,240,236
4,218,712
143,858 143,858
126,883 126,883
17 Employee benefits In AUD
Current Liability for annual leave Liability for long service leave Non-current Liability for long service leave
2017
2016
982,224 464,468 1,446,692
902,664 411,327 1,313,991
338,890 338,890
293,925 293,925
18 Borrowings In AUD
2017
2016
Current Bills payable
1,000,000
1,000,000
Equipment loan
264,313
181,081
1,264,313
1,181,081
4,000,000 263,682 4,263,682
4,000,000 347,024 4,347,024
Non-Current Bills payable Equipment loan
31
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 18 Borrowings (continued) In AUD
The club has access to the following lines of credit: Bank overdraft Market rate loan Business cards Contingent liabilities Finance lease and equipment Facilities utilised at balance date Bank overdraft Market rate loan Business cards Contingent liabilities Finance lease and equipment Facilities not utilised at balance date Bank overdraft Market rate loan Business cards Contingent liabilities Finance lease and equipment
2017
2016
700,000 5,000,000 40,000 2,000,000 4,160,000 11,900,000
700,000 10,000,000 40,000 439,938 4,160,000 15,339,938
5,000,000 627,810 527,995 6,155,805
5,000,000 439,938 528,105 5,968,043
700,000 40,000 1,372,190 3,632,005 5,744,195
700,000 5,000,000 40,000 3,631,895 9,371,895
The bank overdraft facility, the bank loans and lease liabilities are secured by a combination of a registered first mortgage over the club premises at Smith Street Wentworthville and specific freehold property and a registered first equitable mortgage over the club's entire assets and undertakings including uncalled capital. Security consists of: Registered first mortgage by Wentworthville Leagues Club Limited over club premises situated at Wentworthville Leagues Club, Smith Street, Wentworthville, NSW, 2145. A first registered equitable mortgage by Wentworthville Leagues Club Limited over the whole of its assets and undertakings including uncalled capital. Registered first mortgage by Wentworthville Leagues Club Limited over 41 properties situated in Wentworthville. 19 Provisions In AUD
Current Linked poker machine jackpot Provision for mortality commitment Provision for player bonus points Non-Current Provision for mortality commitments
2017
2016
373,520 4,686 200,780 578,986
288,340 4,686 192,315 485,341
79,627 79,627
86,250 86,250
32
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 19 Provisions (continued) Linked poker machine jackpot Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines. These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played. Member mortality commitment Members who joined the club between 1970 and 1989 may have been eligible for a mortality payment. No external fund exists and all commitments are met out of current cash flow. The present value of the mortality commitment reflects managements estimates based upon similar lapse rates and discount rates to prior year Actuarial valuations. Actuarial valuations are obtained every 5 years unless material movements in experience and discount rates occur. Rewards bonus points The best estimate of the commitment to members in relation to unredeemed bonus points is $200,780 (2016: $192,315). Earning rates, lapse rates and terms and conditions shall impact on future estimates. 20 Related party transactions The directors of the club may from time to time hold a director's role, have membership, life membership or be the patron of the various sport and recreational clubs and football clubs that are governed and or be the patron of the various sport and recreational clubs and football clubs that are governed and controlled by the Leagues Club constitution. A Director of the Company is the principle of a business that has a contract for the provision of rental management of the residential property portfolio. The contract is on commercial terms. The rental management fees paid in the 2017 year were $42,941 (2016: $47,793). A Director of the Company is the principle of a business appointed from time to time to perform contract electrical work. Such appointments are made through a commercial tender process coordinated by Project Management and Building Contractors engaged by the Club. From time to time, directors of the company may purchase goods and engage in services that are provided by the company and available to all members. These purchases are on the same terms and conditions as those available to all other members and may be in addition to allowances entitled by the Constitution and approved by the members at the AGM. Apart from the details disclosed in this note, no director has entered into any contract with the Company since the end of the previous financial year and there were no contracts involving directors interests at year end.
Key management personnel The aggregate compensation made to directors and other members of key management personnel of the company is set out below: In AUD
Short term employee benefits Post employment benefits
2017
2016
1,178,603 111,967 1,290,570
1,332,016 92,819 1,424,835
33
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 21 Finance Leasing commitments In AUD
2017
Finance lease and equipment loan commitments payable Not later than 1 year Later than one year but not later than 5 years Minimum lease payments Present value of minimum lease payments Lease liabilities provided for in the financial statements: Current Non-current
18 18
2016
264,288 263,682 527,970 527,970
181,081 347,024 528,105 528,105
264,288 263,682 527,970
181,081 347,024 528,105
Equipment loans relate to the financing of gaming machines with terms of no greater than 3 years. The Company acquires full title to the equipment at the end of the equipment loan agreement and upon payment of the final loan instalment. 22 Financial reporting period The Company has always used a 52 week cycle for its reporting. The monthly reporting cycle is grouped by weeks and follows a 5, 4, 4 cycle resulting in uniforms days in the relative months across consecutive years with the exception of December. Consequently, the close off day for annual reporting purposes changes every year by a day and two days every leap year. The actual month end date for 2017 is 26 December 2017 and the 2016 actual close date was 27 December 2016. 23 Core and non-core properties Pursuant to Section 41J of the Registered Club Amendments Act 2006, the club categorises property as follows 2017
Core property and non core property
103,095,066 103,095,066
2016
89,671,225 89,671,225
Core properties held by the Club are: 50 Smith Street, Wentworthville NSW 2145 2 Dawes Street, Wentworthville NSW 2145 3 Dawes Street, Wentworthville NSW 2145 4 Dawes Street, Wentworthville NSW 2145 5 Dawes Street, Wentworthville NSW 2145 6 Dawes Street, Wentworthville NSW 2145 7 Dawes Street, Wentworthville NSW 2145 8 Dawes Street, Wentworthville NSW 2145 9 Dawes Street, Wentworthville NSW 2145 10 Dawes Street, Wentworthville NSW 2145 11 Dawes Street, Wentworthville NSW 2145 12 Dawes Street, Wentworthville NSW 2145 13 Dawes Street, Wentworthville NSW 2145 14 Dawes Street, Wentworthville NSW 2145 15 Dawes Street, Wentworthville NSW 2145
34
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 23 Core and non-core properties (continued) 16 Dawes Street, Wentworthville NSW 2145 17 Dawes Street, Wentworthville NSW 2145 19 Dawes Street, Wentworthville NSW 2145 432 Great Western Hwy, Wentworthville NSW 2145 3 Jewelsford Street, Wentworthville NSW 2145 7 Jewelsford Street, Wentworthville NSW 2145 9 Jewelsford Street, Wentworthville NSW 2145 11 Jewelsford Street, Wentworthville NSW 2145 13 Jewelsford Street, Wentworthville NSW 2145 15 Jewelsford Street, Wentworthville NSW 2145 17 Jewelsford Street, Wentworthville NSW 2145 19 Jewelsford Street, Wentworthville NSW 2145 21 Jewelsford Street, Wentworthville NSW 2145 27 Jewelsford Street, Wentworthville NSW 2145 31 Jewelsford Street, Wentworthville NSW 2145 51 Smith Street, Wentworthville NSW 2145 58 Smith Street, Wentworthville NSW 2145 60 Smith Street, Wentworthville NSW 2145 62 Smith Street, Wentworthville NSW 2145 66 Smith Street, Wentworthville NSW 2145 68 Smith Street, Wentworthville NSW 2145 70 Smith Street, Wentworthville NSW 2145 72 Smith Street, Wentworthville NSW 2145 74 Smith Street, Wentworthville NSW 2145 76 Smith Street, Wentworthville NSW 2145 78 Smith Street, Wentworthville NSW 2145 80 Smith Street, Wentworthville NSW 2145
35
Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2017 24 Commitments In AUD
Capital works Capital works contracted for but not yet completed
2017
2016
95,827,709 95,827,709
6,496,427 6,496,427
In January 2018, the club has accepted the borrowing offer from Australia and New Zealand Banking Group Limited with a total facility limit of $93.45 million, of which $85 million is in relation to financing the Master Plan Project which is projected to be completed in March 2020. The main purpose of the bank facility is to ensure the Club's commitment to business expansion and investment. In December 2017, the Club has entered into a deed for the purchase of a residential property for $1 million (GST exclusive). The settlement date of this transaction will be advised and expected to take place in early 2018. 25 Contingent assets and contingent liabilities The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. In AUD
2017
2016
Guarantees Bank guarantees
627,810
439,938
26 Events subsequent to reporting date Other than the new finance facilities noted in note 24, there have been no other events subsequent to reporting date which would have a material effect on the Club's financial statements as 31 December 2017.
27 Members guarantee The Company is limited by guarantee. If the Company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. At 31 December 2017 the number of members were 63,563 (2016: 60,091).
36
Wentworthville Leagues Club Limited Unaudited income statements For the year ended 31 December 2017 Unaudited detailed Income Statement disclaimer - The additional information presented on pages 37 to 39 is in accordance with the books and records of Wentworthville Leagues Club Limited which have been subject to the audit procedures applied in the statutory audit by KPMG for the year ended 31 December 2017. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do do not express an opinion on such financial data and no warranty or accuracy reliability is given.
WENTWORTHVILLE LEAGUES CLUB STATUTORY RESULTS FOR LEAGUES CLUB YEAR ENDED 2017
Gaming Machine Revenue Less GST Applicable Thereto Poker Machine Revenue
ACTUAL 2017 YTD 57,706,405 5,221,939 52,484,466
ACTUAL 2016 YTD 56,237,404 5,091,018 51,146,386
Beverage Sales Catering Sales Commission Keno Commission Other Commission Tab Dividends Received Entertainers Interest Received Membership Fees Rent Received Sundry Revenue Revenue Revenue
5,547,469 9,544,671 235,729 150,589 118,371 (1,861) 845,850 120,814 201,336 876,058 44,734 17,683,761 17,683,761
5,266,631 9,247,373 237,026 211,921 98,313 275 930,028 121,698 188,844 891,928 77,203 17,271,239 17,271,239
Total Revenue
70,168,226
68,417,625
Advertising Auditors Fee Bad Debt Bank Charges Beverage Expenses CMS Line Fee Catering Expenses Cleaning Materials Club Journal Computer Expenses Consulting Fees Contractors Depreciation Directors Expenses Directors Honoraria Donations Electricity Entertainers Entertainment Fringe Benefit Tax Gaming Duty Gas Hiring Charges Impairment Insurance Interest Land Tax Legal Fees Loss (Profit) Of Disposal of Fixed Assets Members Entertainment Members Expenses Mortality Funds Payroll Tax Postage & Courier Printing
390,525 74,516 164 105,019 1,972,151 264,613 4,176,621 253,504 407,142 339,181 63,184 2,055,968 5,618,822 104,426 63,132 509,043 723,687 984,958 2,920 65,519 14,385,493 234,947 99,124 (350,103) 576,579 207,207 248,197 59,119 (20,274) 152,669 17,738 (2,273) 765,156 56,791 138,790
459,424 84,744 1,000 90,749 1,837,257 280,151 4,007,009 235,402 392,816 142,556 73,825 1,995,712 5,733,637 120,234 62,017 456,486 700,896 1,121,278 6,556 51,156 14,094,975 187,005 85,297 (314,777) 532,714 391,934 271,732 38,710 716,901 120,393 19,289 2,319 748,790 100,704 130,811
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WENTWORTHVILLE LEAGUES CLUB STATUTORY RESULTS FOR LEAGUES CLUB YEAR ENDED 2017
Prizes & Promotions Property Fees Provisional Expenses Rates & Taxes Rental Finance Repairs & Maintenance Responsible Gaming Salary & Wages Security Services Sporting Association Staff Hiring Staff Training & Ammenities Stationery Sundry Expenses Sundry Licences Superannuation Telephones Travelling Expenses Total Expenditure Total Expenditure Profit /(Loss)before income tax
ACTUAL 2017 YTD 4,225,397 42,941 323,211 2,080 1,843,593 47,250 13,578,618 208,223 1,073,235 306,206 537,536 25,555 67,055 249,871 1,325,927 76,345 54,979 58,732,280
ACTUAL 2016 YTD 3,923,940 47,793 450,000 343,939 2,427 1,729,067 47,250 13,187,027 187,882 1,064,875 348,718 662,421 31,729 83,001 248,938 1,249,284 77,600 43,353 58,708,945
58,732,280
58,708,945
11,435,945
9,708,680
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Wentworthville Leagues Club Limited Unaudited income statements For the year ended 31 December 2017
Key financial data by location Smith Street
Smith Street
2017
2016
$
$
Total income Total expenses
70,168,226 58,732,280
68,417,625 58,708,945
Profit/(loss) before income tax
11,435,946
9,708,680
Income tax expense / (benefit)
541,630 10,894,316
432,094 9,276,586
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Wenty Leagues in Partnership with the Community Wenty Leagues has a proud record of supporting welfare, charitable and sporting organisations within our community. The following were the beneficiaries of financial and in-kind support in 2017
• Adam Gardiner Foundation
• Maltese Elderly Thanksgiving Day
• St Vincent de Paul Operating Account
• Allity
• Maltese RSL
• The Beauty Bank Australia Inc
• Armstrong
• Marayong Heights Public School
• The G’Day Maltaussie Show
• Australian Scalextric Racing & Collecting • Men of League Foundation
• The Golden Retriever Club of NSW
Club Inc.
• Cassia Community Centre HCDA Inc
• Minifit
• The Shepherd Centre
• CEROC
• Multiple Sclerosis
• Toongabbie West Public School
• Circus
• Myeloma Australia as the NSW
• Westmead Public School
• Cumberland Council
• Our Lady Queen of Peace Festa Committee • Westmead Medical Research Foundation
• Cittadini Marriage Celebrants Meetings
• Our Lady Queen of Peace Primary
• Wentworthville Community Garden
• Delta Society Australia
• Parramatta Eels
• Wentworthville Public School
• Girl Guide Association South
• Parramatta Mission
• Wenty ToastMasters
• Greystanes High School
• PPMT Evolve House
• Wheelchair Sports NSW
• Holroyd High School
• Rotary Club of Holroyd Inc
• Youth Off the Streets
• Kidsafe NSW
• Royal Institute for Deaf and Blind Children
• Knitted Knockers Australia
• Royal Life Saving Society NSW
• KU Wentworthville
• Southern Cross Care
• Learning Links
• Spinal Muscular Dystrophy Association
• Lions Club Parramatta
• St Gertrude’s Catholic Primary School
• Lions Club Winston Hills
• St Margaret Marys School
• Make a wish
• St Monica Primary School
• Maltese
• St Pauls Year 10 Dinner Dance
• Maltese Cultural Association of NSW Inc
• Streetmed
Wentworthville Dist Support Group
40
WENTWORTHVILLE LEAGUES CLUB LIMITED For The Financial Year Ended 31 December 2016
Wentworthville Leagues Club Limited 50 Smith St, Wentworthville NSW 2145
Wentworthville Leagues Club Limited
41
59th Annual Report 2016
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